HRMS TECH-Services Company Business Plan

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Every new business venture must have some prescribed objectives. The objective should aim at pushing through the market the service and products a company intends to offer for sale. The objective of the current business plan summary is to market and sale 600 units of the HR system to various organizations in the UAE over the first three years of its operation. This objective is not driven by the motive to make profits at the infancy stage of the company’s life cycle of its operation. The primary goal here is to break even, after which upon building the brand name, the company will then aim at not only breaking even, but also making profits as the primary motive for its development.


While developing a business plan, the mission sets forth the opportunity for communicating an organization’s culture, its ethics, goals, and norms that are deployed in the process of arriving at decisions. The company’s missions is to respond to HR-related information processing needs of organizations that are located within the UAE’s capital city and across the nation to increase their accessibility and choice of preferred human resource capabilities while ensuring their good management to facilitate their high employee retention rate. An analysis of the quality of a mission statement of an organization is important to determine its clarity, its logic, relevancy, breadth, and significance. A mission needs to have clear purpose and scope that establishes a clear value and standards coupled with organizational behaviors. The new HR systems company’s mission statement captures all these aspects.

Company Summary

Based in the UAE, HRMS TECH-services deals with HRMS software development, customization, and training on the use of such software. The HR department within any business entity, irrespective of its size, executes numerous tasks that relate to employees. It is responsible for selection, recruitment, training and development, conflict resolution, employee benefits management, monitoring the conduct of employees, and handling and processing of payrolls among many other tasks. In ensuring that a business conducts these tasks in an easier way, the new medium-sized HR company steps in by ensuring that the automation of HR systems happens.

HRMS TECH-services offers software applications to organizations that seek to automate their HR systems. Even though this agenda may be an expensive decision for the targeted client organization, automation of HR systems is beneficial in the long-term. It helps in reducing the cost of the HR department by not only reducing the number of employees in the department but also increasing the pace of processing of HR-related information, which creates confidence about the capabilities of the department. HRMS TECH-services will operate in the UAE by providing organizations with capabilities that are associated with the automation of HR systems.


Apart from selling the software applications, HRMS TECH-services will also conduct maintenance work for the applications and training programs for the use of the applications to organizations that buy them. Where customization of the software applications is necessary, the company will be happy to collaborate with client organizations in building long-term relationships in reprogramming their HRMS applications to meet their emerging needs. HRMS TECH-services expects to offer HRMS system-integrating modules such as recruitment, payroll processing, shift planning, evaluation of employee performance, management of benefits, document management, grievances handling, work flow processes, management of leaves, and timesheets among other modules that relate to the work of HR within an organization.

Market Analysis Summary

For HRMS TECH-services to market its services, it needs to adopt appropriate marketing strategies that are consistent with the dynamics of the industry (The UAE IT Industry). The right strategy deserves to incorporate the existing concerns of an organization’s microenvironments in line with the strengths and opportunities that exist in the business environment. The goal is to reduce weaknesses and threats of an organization, which may have a negative impact on its success.

An emerging question is whether HRMS TECH-services has the opportunities for success in the UAE market. Currently, the UAE has companies such as Letosys and Smart City Systems that are already operating in the HRMS applications market. However, an opportunity still exists for the new company to compete with these businesses to gain market success. The key to success will rest on how HRMS TECH-services will establish its competitive edge in the market. Indeed, the market for HRMS applications in the UAE is attractive, considering that the nation is an emerging market. Letosys notes that organizations that deploy HRMS in the UAE have been in operation for more than five years (par.3). Those, which have been operating for more than seven years still use old technologies in HR management (Letosys par.4). Apart from foreign organizations, many companies in the UAE still face challenges in integrating multiple applications for HR to constitute one platform.

In summary, the market for HRMS systems offered in the UAE is attractive for HRMS TECH-services. Many organizations have not yet replaced their old HR technologies with modern integrated automated technologies. Applications that use the principles of cloud computing are also now becoming easily affordable in the UAE. Consequently, irrespective of the size of an organization, HR applications are affordable, considering that they also have low initial costs of operation. The UAE has also embraced emerging technologies. This move provides room for most people to work in an online environment. Organizations also have a need for ensuring the consolidation of applications that run on different platforms into one platform where they are sensitized on the need for analytic reporting.

Market Segmentation

For HRMS TECH-services to succeed in placing strongly its brand, it needs to determine its market segment. Market segmentation encompasses the division of consumers into subsets that constitute common needs in terms of consumption of goods and services (Dann and Dan 87). Once the segmentation is done, the appropriate market campaigns are set to target the subsets. HRMS TECH-services Company uses psychographic segmentation that captures people’s opinions and interests.

HRMS TECH-services divides its market into those companies that embrace HRM integrated systems and those that want to cling on the old technologies. Although it mainly focuses in the short-run on the large, small, and medium-sized organizations that seek to transit from disintegrated HRM systems to integrated systems, it also pays an effort to market itself to the other group of organizations since their technologies are unsustainable in the long-term. Therefore, they are likely to consider automating and integrating their HRM systems in the near future as a way of securing a competitive edge.

Target Market Segment Strategy

HRMS TECH-services Company seeks to target its market segment through internet and social media communication. Additionally, traditional media platforms such as TV, radio, newspapers, and magazines are used to direct people to the company’s website or engage in social media interactions with the corporation.

As a targeting strategy, social media is incredibly helpful. It opposes the traditional approaches to brand communication in which organizations mainly focused on “controlling what was said about their products and brands by dominating communication channels with carefully planned messaging” (Anbu and Mavuso 319). However, in the modern business environment, the control of messages is immensely difficult. This finding is attributed to the fact that the ability of customers to access information through online interactions has become incredibly sophisticated.

The significance of targeting people through social media is incredible. Indeed, “today, customer communication takes the form of bilateral dialogue” (Rust, Zeithaml, and Lemon 117). This form often entails online communication through the business-to-customer (B2C) process. HRMS TECH-services will position its brand as a service for those with the interest of increasing the speed of executing their HR functions and reducing costs that relate to such functions. Since large, medium-sized, and even small companies all struggle to reduce their costs for high profitability, the services of the company are expected to receive large acceptance in the UAE market.

Service Business Analysis

Human resource management systems (HRMS) involve the process that merges and intersects the functions of HR with information technology (IT). HRMS takes the place of manual personnel HR systems so that paperwork is maintained at minimal levels. The central concern is to ensure that the processing of HR-related data is automated to provide avenues for enhancing the integrity of such data. Consequently, “HRMS allows an agency immediate access to employee records and enhanced reporting functionality, thus providing managers with timely information to make essential human resources decisions” (Agarwala 178).

This strategy has the overall impact of increasing the efficiency of executing human resource functions among them absenteeism management, recruitment, payroll preparation, and performance records preparation among others (Audea 535). This plan makes the HRMS service business a worthwhile venture in the UAE. Thus, HRMS TECH-services has no fear in risking its monetary and time resources in the new business.

Risk Management

During the normal operational environment of any business, several risks are encountered. HRMS TECH-services needs to address risks to ensure long-term operation. Thus, in the business planning process, it is crucial to incorporate concepts of risk management. Depending on the nature and type of risk that an organization may anticipate to face, a number of strategies may be adopted in the endeavor to help in mitigating them (Carmody 388). Some of the risks that HRMS TECH-services endeavors to mitigate include undue lawsuits, theft, fraud financial market uncertainties, credit risks, and confidential information leakage risks. When these risks are well managed, the degree of vulnerability of HRMS TECH-services is lowered.

Strategy and Implementation Summary

The implementation of any HRMS project for any client will initiate with the analysis of each client’s unique requirements to ensure that the “current HR processes are collated and documented to create workflows” (Glenn, Rampton, and Turnbull 92). Before distributing all information coupled with proposal to the relevant authenticating authorities for any client, an analysis of technical and functional needs of the projects that are consistent with the established client organization’s management hierarchies is done. Another critical issue involves making a consideration of studying the accepted HR reporting standards by the client organization.

The next phase of the implementation process encompasses exporting the employees’ information from the existing payroll systems. Depending on the hierarchical structures, appropriate assignment of electronic signatures is then executed. Since electronic data is prone to exposure to a variety of risks that may lead to its loss, particularly when the management systems are availed to the employees, it becomes crucial to implement systems for tracking data and maintaining data backups. When this goal is accomplished, the next approach will involve completing the functionality of the system tests and appropriateness of the user interfaces. Another crucial work element in the implementation process of the HRMS involves, “writing and distributing standard operating procedures for end users” (Glenn, Rampton, and Turnbull 109).

After a successful implementation of this aspect, communication plans and training program for the HRMS are developed. Training is either web-based, or classroom-based, or both. For each client organization, system administrators will take charge of training and guiding the employees and the human resource personnel on its operations and maintenance. The end of each project that is implemented for each client is marked by the documentation of the resources utilized and the achievements.

Competitive Edge

HRMS TECH-services may exploit several strategies to achieve a competitive edge in the UAE’s HRMS industry. Competitive edge implies the advantages the organization will have over other companies that operate in the industry, which while harnessed ensure that the HRMS TECH-services continue to grow its clientele so that after establishing its brand, it will make sales to cover its costs while making profit. Several options may be deployed to achieve this goal. For example, the company can pursue the low-cost strategy and products/ services differentiation in different market segments so that it can charge higher prices in some markets.

At the startup stage, the company will deploy the low-cost strategy, which will ensure it receives initial clientele, especially for organizations, which build their success around the cut-rate strategies. Such organizations cannot purchase highly priced HRMS applications. After building a strong brand, it will then shift towards service differentiation as a source of competitive edge.

Sales Strategy

Sales strategy encompasses the mechanism that is deployed by an organization to make its sales. The company deploys the push strategy in which it brings to the attention of target customers examples of HRMS applications that are pertinent to the general organizations. Once customers become interested and a contract signed, HRMS TECH-services Company then develops customized HRMS software for the client.


Milestones provide checkpoints, which signal whether an organization is growing or whether it has chances of success. They occur in the process of attaining business goals and objectives. HRMS TECH-services’ major milestone is to reduce marginal costs. This idea is important at the infancy stage, which is characterized by low profitability. The company also objects to create optimal design for its website to ensure that all customer interactions are held in an online environment. This strategy has the effect of reducing operational costs. HRMS TECH-services has a goal of acquiring 200 clients in a year. However, 100 clients in a year are still an indication of chances of success. This move reduces to a monthly milestone of about nine clients.

Management Summary

HRMS TECH-services managerial structure is hierarchical with three entrepreneurs who operate as sales and procurement, financial, and HR directors. It deploys premeditated administration approaches, which entail a collection of unremitting actions and inclusive courses that organizations use to classify and align capital scientifically (Dess, Lumpkin, and Taylor 91). The managerial activities will be aligned with the organization’s mission, vision, and plans (Dess, Lumpkin, and Taylor 91).

Through deliberate administration, HRMS TECH-services acquires a means for changing fixed plans into calculated performance results to accomplish its agenda while enabling trade tactics to develop as demands and conditions change. Indeed, strategic management provides an avenue for probable organizational growth by creating effective mechanisms for analyzing HRMS TECH-services’ strategic goals, which include its vision, missions, and objectives alongside the analysis of the organization’s internal and external environment.

Financial Plan

The financial plan for HRMS TECH-services is based on estimates. Hence, the company needs first to develop initial plan for investment to ensure that the financial plans work. Table1 shows the breakeven point analysis for HRMS TECH-services. All figures are quoted in terms of Dirham currency. From table 1, the breakeven sales point is five units. At this point, no revenue is generated. The company will operate such that all its monthly expenses are factored in the total value of units sold at the breakeven point (500, 000). Since the company will operate strictly under no credit terms, it anticipates maintaining a positive cash flow.

Table 1: Monthly Breakeven Point Analysis

Quantity sold 0 1 2 3 4 5 6 7
Value of Units sold 450,000 460,000 470,000 480,000 490,000 500,000 510,000 520,000
Revenue -450,000 -360,000 -270,000 -180,000 -90,000 0 90,000 180,000

Exit strategy

An exit strategy may involve taking premature profits or stopping loss strategies. Since the goal of the company is to operate at the breakeven point in the first few years, stop-loss strategies are selected as the exit strategy to ensure that the company owners do not lose money in the process of trying a new business venture in case market turns against them. The company considers strategic acquisition as the most suitable exit strategy that will guarantee its preservation of capital.

Works Cited

Agarwala, Timothy. “Innovative human resource practices and organizational commitment: an empirical investigation.” International Journal of Human Resource Management 14.2(2003): 175-197. Print.

Anbu, Johnson, and Martin Mavuso. “Old Wine in New Wine Skin: Marketing Library Services through SMS-Based Alert Services.” Library Hi Tech 30.2(2012):310-320. Print.

Audea, Stephen. “HRM professionals and their perceptions of HRM and firm performance in the Philippines.” International Journal of Human Resource Management 16.4(2005): 532-552. Print.

Carmody, Lucy. “Key risks facing the Asian beverage industry.” Asian social corporate responsibility journal 1.1(2009):387-391. Print.

Dann, Susan, and Stephen Dan. Introduction to Marketing, Australia: Wiley, 2004. Print.

Dess, Gregory, Gerry Lumpkin, and Marilyn Taylor. Strategic Management, New York, NY: McGraw-Hill Irwin. 2005. Print.

Glenn, Martin, John Rampton, and Doran Turnbull. Human Resources Management Systems: A Practical Approach, Ontario: Toronto, Carswell, 2009. Print.

Letosys. HRM Software in Middle-East Review. 2015. Web.

Rust, Roland, Valarie Zeithaml, and Katherine Lemon. “Customer centered brand management.” Harvard Business Review 82.4(2004):110-118. Print.

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